22 banks accused of manipulating treasury auctions

Pointing The Finger

Twenty-two financial companies that have served as primary dealers of U.S. Treasury securities were sued in federal court on Thursday, in what was described as the first nationwide class action alleging a conspiracy to manipulate Treasury auctions that harmed both investors and borrowers.

Reuters reports that the State-Boston Retirement System, the pension fund for Boston public employees, accused Bank of America's Merrill Lynch unit, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan, UBS and 14 other defendants of illegally trying to profit on the sale of Treasury bills, notes and bonds at investors' expense.

According to the pension fund's complaint, filed in U.S. District Court in New York, the banks used chat rooms, instant messages and other means to swap confidential customer information and coordinate trading strategies in the roughly $12.5 trillion Treasury market.

To access the complete Reuters article hit the link below:

Lawsuit accuses 22 banks of manipulating U.S. Treasury auctions

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